Costco Wholesale Corporation

Q1 FY26Consumer Defensive

Costco Wholesale Corporation Q1 FY26 Results — Earnings Call Analysis

Q1 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹995

Market cap₹4.4L Cr

P/E51.7

Updated29 May 2026

Read4 min read

What the Q1 FY26 call signalled

2 of 4 strong

RevenueModerate growth

MarginMargins steady

CapexCapex planned

Order bookOrder book rising

The short version

- Costain has a record forward work position of GBP 7 billion, up 30% year-on-year, representing over 6 times current revenues, underpinning growth for 2026 and beyond. - Costain expects a step change in performance starting in the 2027 financial year, driven mainly by increased volume of work and new contract wins.

From Costco Wholesale Corporation's Q1 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Moderate growth

Costain has a record forward work position of GBP 7 billion, up 30% year-on-year, representing over 6 times current revenues, underpinning growth for 2026 and beyond.
90% of work for 2026 is already secured, providing strong confidence in meeting 2026 expectations.
Significant growth expected in 2027 driven mainly by increased volumes, especially from:
Water sector entering AMP8 delivery phase with investment doubling compared to AMP7.
New road contracts ramping up to full delivery.
Growth in aviation work, including new frameworks at Gatwick Airport.
Large nuclear energy contract at Sellafield.

2 more points management made on revenue & sales performance

Profitability & Margins

Costain expects a step change in performance starting in the 2027 financial year, driven mainly by increased volume of work and new contract wins.
They have already secured 90% of work for 2026, with GBP 2.4 billion worth of forward work for that year, giving high confidence in hitting 2026 targets.
Growth in water sector (moving from design to delivery phase in AMP8), new road contracts, and expanding aviation and nuclear contracts (e.g., Sellafield) will drive earnings growth in 2027.
Margins are expected to normalize around 4% for 2026 and 2027, still industry-leading, with a clear ambition to reach 5% margins longer term.

2 more points management made on profitability & margins

See what Costco Wholesale Corporation said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Capex planned

Costain Group PLC is positioned to benefit from committed investments in essential critical infrastructure in the UK.
The UK government’s national infrastructure strategy plans GBP 725 billion investment over 10 years, with a recently updated infrastructure pipeline confirming committed investment.
Costain has a record forward work position of GBP 7 billion (over 6x revenues), supporting growth in 2026 and a step change in 2027.
Growth is driven by water sector projects moving from design (2025) to delivery (2026-27), with AMP8 investment double that of AMP7.

2 more points management made on capital expenditure plans

Fundraising & Capital Structure

There is no mention of any current or future fundraising through debt or equity in the Q&A session.
Costain Group PLC has no borrowings; they hold cash, which benefits from higher interest rates.
The company has strengthened its balance sheet and increased returns to shareholders via dividends and a GBP 20 million share buyback program (their third).

2 more points management made on fundraising & capital structure

See what Costco Wholesale Corporation said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Order book rising

Costain Group PLC has a record forward work position of GBP 7 billion, up 30% in the year.
This forward work position represents over 6 times their revenues.
They have secured 90% of their work for 2026, providing confidence in delivery.
Forward work for 2026 includes GBP 2.4 billion worth of projects.

2 more points management made on order book & pipeline

What Costco Wholesale Corporation's management said in earlier quarters

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Frequently Asked Questions

What were Costco Wholesale Corporation Q1 FY26 results?

What is Costco Wholesale Corporation share price analysis?

Costco Wholesale Corporation currently shows a below-average growth signal. The stock trades at a P/E of 51.7 with a market cap of $441,523. Investors should review the full earnings analysis for detailed insights.

Is Costco Wholesale Corporation planning capital expenditure?

- Costain Group PLC is positioned to benefit from committed investments in essential critical infrastructure in the UK.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.